# Commission Delegated Regulation (EU) No 149/2013 of 19 December 2012 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to regulatory technical standards on indirect clearing arrangements, the clearing obligation, the public register, access to a trading venue, non-financial counterparties, and risk mitigation techniques for OTC derivatives contracts not cleared by a CCP (Text with EEA relevance), Article 17: (Article 11(14)(b) of Regulation (EU) No 648/2012)Criteria for using marking-to-model

Extent: E+W+S+N.I.

For using marking-to-model, financial and non-financial counterparties shall have a model that:
(a) incorporates all factors that counterparties would consider in setting a price, including using as much as possible marking-to-market information;
(b) is consistent with accepted economic methodologies for pricing financial instruments;
(c) is calibrated and tested for validity using prices from any observable current market transactions in the same financial instrument or based on any available observable market data;
(d) is validated and monitored independently, by another division than the division taking the risk;
(e) is duly documented and approved by the board of directors as frequently as necessary, following any material change and at least annually. This approval may be delegated to a committee.

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Source: https://www.legislation.gov.uk/eur/2013/149/article/17 (the official version)
Page: https://openlegislation.uk/eu-regulation-2013-149/article-17
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.